Management Control Systems in Multinational Corporations: A Case Study Approach - Navigating the Labyrinth of Global Operations

Abstract

This article delves into the complex landscape of management control systems (MCS) within multinational corporations (MNCs). Drawing upon case study research and relevant social science theories, it examines how diverse organizations navigate the challenges of aligning global operations with corporate goals. The article explores various MCS mechanisms, including planning, budgeting, performance measurement, and risk management, analyzing their effectiveness and limitations in the context of cultural diversity, geographic dispersion, and different levels of subsidiary autonomy. Through a comparative lens, the article showcases the unique approaches adopted by MNCs in different industries and regions, highlighting best practices and areas for improvement in designing effective MCS for global success.This paper explores the intricacies of management control systems (MCS) in the context of multinational corporations (MNCs) through a comprehensive case study approach. The study delves into the challenges and strategies involved in navigating the labyrinth of global operations. By examining real-world cases, the paper aims to shed light on the dynamic nature of management control in MNCs and its implications for organizational performance. The analysis considers the impact of cultural, regulatory, and operational differences on the design and implementation of management control systems in diverse international settings. The findings contribute to a deeper understanding of how MNCs adapt their management control mechanisms to effectively manage and optimize their global operations.